According to the report, 9% of India's 600 million estimated workforce would be deployed in new jobs that do not exist today. 60%-65% of Indian workforce in the IT-BPM would be deployed in jobs that have radically changed skill sets, followed by 55%-60% in BFSI and 50%-55% in the automotive sector.
Exponential technologies in advanced markets is expected to improve productivity by 15-20% in the next five years, it adds.
FICCI and NASSCOM had jointly commissioned a report on 'Future of Jobs in India' with EY. The report provides insights into the future of jobs and vision of change for the job market in India by 2022. The report highlights the impact that various primary forces such as globalisation, demographics, and Industry 4.0/exponential technologies, are expected to have on the key sectors of the economy. It also provides an overview of the job creation rates across various sectors and the new jobs that will emerge in the next few years.
The future of jobs in 2022 would be determined by the country's response to 12 megatrends captured by the EY framework, which includes, under globalisation - i) the level of exports of India based companies, ii) rapid adoption of exponential technologies in the advanced markets and its impact on offshoring, iii) increasing/shrinking overseas job market for Indian workforce and iv) level of FDI flows.
Under adoption of exponential technologies by Indian companies - i) business innovation, ii) creation of highly optimized supply chains, iii) launch of smart connected products/services, iv) new work arrangements, and v) the demand for resourceful planet and sustainability. Lastly, under demographic changes - i) increasing urbanization, ii) rising middle-class and iii) high proportion of young population including millennials.
In India, creation of highly optimised supply chains under exponential technologies and rising middle-class under demographic changes at 68% and 64%, respectively shall be the key influencers.
Dr. Sanjaya Baru, Secretary General, FICCI, said in a statement, "Since there is no India based empirical study which highlights the impact of advanced technologies on key manufacturing and services sectors that create the bulk of jobs and contributes majorly towards GDP, FICCI and NASSCOM initiated the study on 'Future of Jobs' with EY. The report examines the global megatrends, its impact on Indian economy and recommends the way forward."
Mr. R. Chandrasekhar, President, NASSCOM, said, "The report attempts to present a 2022 picture - a time when no one can afford to 'rest on one's laurels' but needs a continuous learning culture. Another important fact being seen is that non-tech firms are increasingly emerging as the source of information technology roles; for eg. automotive, aerospace, BFSI, telecom, retail, healthcare, etc."
In the organised manufacturing and service sector, the employment is expected to increase from the current 38 million to 46-48 million by 2022. All the new forms of employment are expected to add a further 20% - 25% to the workforce of the current de?ned "organized" sector in 2022. This would increase the share of the organised sector in the overall economy to 10% from current level of 8%, i.e. approximately 60 million in a workforce of 600 million.
The new forms of employment would include:
Contract employees in infrastructure sector, Micro entrepreneurs supported by MUDRA schemes , employer-entrepreneurs in technology enabled employment models, freelance workers on online platform models, "Uber" workers, SME and artisan entrepreneurs on ecommerce platforms, Delivery workers and service providers in the ecommerce ecosystem And Employees in tech start-ups.